Nigerian Exchange Rate to Decide Africa's Biggest Economy: Chart
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Deciding which African economy will be the biggest at the end of this year will depend on which exchange rate you use. While the International Monetary Fund reckons Nigeria will come out on top with $395 billion of output, it uses an average official exchange rate of 304 naira per dollar, which few companies or individuals get access to. Using the market-determined price for the naira, known as Nafex and around 20 percent weaker than the official one, means Nigeria’s gross domestic product will be smaller than South Africa’s $344 billion, according to Renaissance Capital.